Case File: Therapy Resources Management

Wednesday

Jun 4, 2014 at 5:23 PMJun 4, 2014 at 6:09 PM

It has been a tough year for the physical therapists, clerical staff and corporate members of Therapy Resouces Management, a Fall River company that was raided last summer during a federal investigation into alleged Medicare fraud. To date, no criminal charges have been filed.

Brian Fraga Herald News Staff Reporter @BfragaHN

It has not been easy working under a cloud of suspicion for the physical therapists and office staff at Therapy Resources Management.
Employees have had to make do with pay cuts because the business is having to pay legal expenses while not bringing in the same revenue it was before. Some people have left to higher-paying jobs, while those who have chosen to stay out of loyalty are finding it more and more difficult to do so.
"For us, this has been depressing to deal with. We've had to defend the company to people who don't know what we are about," a senior staff member told me during a recent meeting at Therapy Resources Management's headquarters at 1 Father Devalles Boulevard.
"We've lost contracts, and had difficulty securing new business. How long can this go on for?" another senior staff member added.
Two weeks ago, the Herald News met with five representatives from TRM who wanted to talk about the stress that their company has undergone since agents from the FBI and the U.S. Department of Health and Human Services raided its offices on June 20, 2013.
The federal agents seized evidence in an apparent investigation into alleged Medicare fraud. Therapy Resources Management provides in-patient and out-patient rehabilitation services to about 70 health care facilities in Massachusetts and Rhode Island, including Fall River, New Bedford and Taunton.
Last year, a former employee of TRM alleged that the company "knowingly and systematically" billed Medicare for excessive and unnecessary therapy services to maximize profits.
The employee also accused the company of altering diagnosis codes in patients' medical records to obtain higher rates for Medicare reimbursement, according to documents from a civil lawsuit filed against TRM in U.S. District Court in Boston.
Court records indicate that the civil lawsuit is still pending. Meanwhile, neither HHS nor the FBI have filed criminal charges against anyone at TRM. The federal government does not confirm or comment on pending investigations.
The five TRM employees - some from management, others who are physical therapists in the field - spoke to me on the condition of anonymity because they said they were concerned that they could be subpoenaed to testify in court if their names were published.
The employees described TRM as a small, close-knit company that encourages professional development and career advancement among its 650 employees. They said anyone can call the company president at any time to express a concern.
"It's very frustrating for us who work here. This is our home. This is our family," said one woman who said she has been a physical therapist at TRM for eight years. She said the company also helped her go back to school.
"The government has essentially paralyzed us," said one mid-level manager. "How long can the government expect a company this size to maintain its operation?
The employees said that many of their colleagues feel enough loyalty to the company that they are trying to ride out the turmoil of being under suspicion by the federal government.
"I don't think anybody would be here in this room if we thought the company had done something wrong," said one TRM associate who works on the corporate side.
The former employee whose allegations prompted the federal scrutiny told investigators that TRM's management told physical therapists that they had to schedule patients for as many sessions as needed for the higher Medicare reimbursements, even when the patients could not benefit from extra therapy.
When one physical therapist balked, she was transferred to a different facility, according to court documents. The civil lawsuit accuses Therapy Resources Management of violating the False Claims Act and of retaliation.
Therapy Resources Management’s attorney filed a response to the complaint denying the allegations and saying the company followed all Medicare billing procedures required by law.
The employees whom the Herald News spoke with do not believe their company did anything wrong or illegal. They said that are willing to speak with federal investigators if that helps move the investigation along.
"We're confident that what we are doing is appropriate," said one female mid-level manager.
"The stress level of this not being resolved is wearing on people," the male employee said. "It's like worrying about a test for an entire year."
"Our clients want answers, but we don't know anything," another female manager said.
With wages being cut and no overtime allowed, the employees said some of their coworkers are in danger of losing their homes.
"We're desperate for a resolution," one manager said.
"It's a special company," another manager added. "But we're exhausted."